Robert Breedlove, an expert on the nature of money and Bitcoin, discusses the attributes of ideal money, the origins of money and division of labor, and why Bitcoin is the closest thing to perfect money humans have ever had.
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Quick takeaways
Gold coins were recognized by their sound when dropped, signaling their authenticity, highlighting the importance of recognizability in money.
Bitcoin's properties align with the attributes desired for a medium of exchange in the 1800s, making it a potential form of money.
Central banks possess significant control over the global monetary system, engaging in activities like currency counterfeiting and manipulating the money supply.
Deep dives
Properties of Money and Recognizability
One of the properties of good money is recognizability, where people can trust and verify the authenticity of the money. This is important because if the money is torn or damaged, it becomes difficult to determine its authenticity, leading to hesitation in accepting it. In the past, gold coins were recognized by their sound when dropped, signaling their authenticity. The credibility of money is based on its divisibility, durability, recognizability, portability, and scarcity. These properties determine the usefulness of money in facilitating trade and providing purchasing power.
Understanding the Difference Between Money and Credit
In the 1800s, people understood the distinction between money and credit. Gold was considered money, while other instruments like banknotes were seen as credit or promises to redeem for money in the form of gold. This understanding highlights the importance of a physical, tangible asset like gold as the basis for money. Bitcoin, with its properties of divisibility, durability, recognizability, portability, and scarcity, would have been more apparent as a form of money in the 1800s because it aligns with the attributes desired for a medium of exchange.
The Evolution of Money and the Emergence of Bitcoin
Money evolves through trial and error as societies determine the most suitable asset to fulfill its functions. Historically, various goods such as salt, seashells, and gold have been used as money. The market chooses the asset that best satisfies the properties required, including divisibility, durability, recognizability, portability, and scarcity. Bitcoin, with its technological advancements, addresses many of these properties and offers a fixed supply, making it a disruptive form of money and a potential alternative to traditional centralized currencies controlled by governments.
Bitcoin as a Solution for Self Custody of Bitcoin
The podcast episode discusses the importance of self-custody for owning bitcoin and introduces iCoin Wallet as a hardware wallet that allows users to securely store their bitcoin. The speaker highlights the need for a device like iCoin Wallet to truly own bitcoin and emphasizes the accessibility and user-friendliness of the wallet's UI/UX experience. By using a hardware wallet like iCoin Wallet, individuals can maintain control and ownership of their bitcoin.
The Nature and Impact of Central Banks
The podcast episode explores the role of central banks in the global monetary system and specifically mentions the Bank of International Settlements as the central bank of central banks. The speaker describes central banks as legal monopolies with the exclusive privilege to produce and control currency. They discuss how central banks, including the Federal Reserve, engage in activities like issuing currency, manipulating the money supply, and engaging in deficit spending. The speaker presents central banks as coordinated cartels that benefit from currency counterfeiting and possess significant control over the global monetary system. They further highlight the arbitrary power and potential for abuse that central banks hold, including the ability to censor transactions and confiscate money.
In this episode with Scott McBlane, we discuss the nature of money, the attributes of ideal money, the central bank of central banks, and why Bitcoin is the closest thing to perfect money humans have ever had.
Scott McBlane is the host of the YouTube channel called Scott McBlane.
// OUTLINE // 00:00:00 - Coming up 00:00:33 - Intro 00:02:06 - Helping Lightning Startups with In Wolf's Clothing 00:02:52 - Introducing Robert Breedlove 00:03:38 - Learning the Nature of Money 00:05:13 - Introduction to The "What is Money?" Show 00:07:03 - Language and Money 00:10:52 - Money: A Medium of Exchange for Human Action 00:14:19 - Imperfection of Money 00:16:03 - Money is a Tool 00:17:33 - Attributes of Ideal Money 00:18:58 - Global Economy is a Complex Adaptive System 00:22:15 - Origins of Money and Division of Labor 00:25:34 - Money is a Primary Part of Civilization 00:28:01 - Government Didn't Create Money 00:31:40 - Money is the Most Tradeable Asset 00:32:43 - Secure Your Bitcoin Stash with the iCoin Hardware Wallet 00:33:39 - The Barter Problem: Non-Coincidence of Wants 00:38:20 - What is the Bank for International Settlements 00:41:50 - Organized Corruption of Money 00:45:16 - The Money Printing Machine 00:47:33 - The Need for an Immune Money to Counterfeiting 00:48:30 - The Problem with Gold 00:51:04 - Bitcoin: The Ultimate Uncounterfittable Money 00:53:05 - Like Zero, Bitcoin is an Absolute Innovation 00:54:51 - A Bitcoin Wallet with Privacy Built-In: Wasabi Wallet 00:55:43 - Quality of the Money Dictates Its Transaction 00:57:51 - People Want Specific Outcomes of the Goods 00:59:42 - Five Useful Properties of Money 01:02:32 - Properties of Money Determine its Purchasing Power 01:05:31 - Why Bitcoin is the Perfect Money 01:09:49 - Bitcoin: The Invention of Pure Money 01:13:07 - Experience of Meeting Jordan Peterson 01:18:13 - Fix the Money, Fix the World